June 17, 2002
Furukawa Electric established a manufacturing and marketing company for reflow furnace in the Suzhou Industrial Complex of China (Location: Suzhou-city, Jiangsu-province) in May this year. The name of the company is "Furukawa Electronics (Suzhou) Co.Ltd."; the president is Satoru Yamada; capital is 600 thousand US$; the controlling shares are Furukawa Electric: 35 %, Asia Vital Components Co.Ltd. (Furukawa's affiliated Taiwanese company): 50 %, and International Machtronic Co.,Ltd. : 15 %.
Furukawa Electric considers that, in order to realize a substantial cost reduction in the industry of surface mounting technology (SMT) as well as to enlarge market areas, it is essential to have a manufacturing company for SMT in China which is expected to grow into the world center of SMT market, thus taking the decision of establishing the company.
Whereas the establishment was implemented based on a joint investment with three Taiwanese companies taking into consideration expansion of marketing outlet and marketing network together with bolstering the management of human affairs and production, Furukawa Electric will take the initiative in directing the management of the company.
Start of the operation is scheduled for July, and the first delivery of product for August, with a maximum production capacity of 50 sets per month. They will focus on the production of atmospheric furnaces for a time, proceeding to produce nitrogen furnaces and printers with higher added values after 2003. They will also reinforce local maintenance services and equipment demonstration, thereby promoting marketing activities in China which undergoes burgeoning market growth. The company may proceed to manufacture not only mounting equipment such as reflow furnace and printer but also electronic products.